– Statia says GRA continues to issue exemption letters to the company

By Tamica Garnett
COMMISSIONER General of the Guyana Revenue Authority (GRA), Godfrey Statia, maintains that the Authority had, at no time, prevented the Bauxite Company of Guyana Incorporated (BCGI), owned by RUSAL, from receiving tax exemptions to import fuel, although there is an ongoing investigation against the company for abuse of tax concessions.

BCGI last week Wednesday, 22 January, informed 142 employees that they were being laid off effective from Thursday, 23 January, citing the reason as “reduced operations” due to “shortage of fuel”. “At no time did we ever allow RUSAL not to have fuel for their operations, at no time whatsoever. Fuel for operations they have been getting exemptions for that, and it is unfair for them to say that they have not been getting exemption for it,” Statia commented in a telephone interview with the Guyana Chronicle on Thursday.
Statia says he has continuously been issuing exemption letters to the company.

“I would assure you that what RUSAL is supposed to get they would’ve already gotten. They have gotten that exemption letter since last week. As a matter of fact, up to today I signed a couple more exemption letters for them. So I would like the nation to be disabused of that fact, at no time did I stop RUSAL having fuel that they need to do their operations, what I would do is investigate to see whether the fuel they have gotten exemption for if they’re utilising it for its purpose given, or whether it is being sold outside.”
The Ministry of Social Protection (MoSP), in a statement issued on Monday, said that the Labour Department has taken the position that the workers were improperly laid off by the company and should therefore be recalled immediately.

BCGI’s representative, Vladimir Permyakov, would neither confirm nor deny whether the purported fuel shortage was due to denied documentation from GRA.

“We are not in a position to do so. The company is not importing fuel at this period of time. BCGI regularly buys fuel from GuyOil,” Permyakov informed the Guyana Chronicle.
Permyakov said the company experienced “a long pause in processing of our application” which saw the company’s fuel reserves dropping to a critical level. “Since mid-January the company has been coerced to implement fuel austerity regime within the whole enterprise; mining operations were downscaled, then stopped. Nevertheless the company has been paying workers without having a work front at mine, in particular,” he said.

The company is under investigation for the last month over allegations that it was retailing fuel that it was buying on duty free concession; and is said to have dismantled and sold equipment for which it was also granted duty-free concession. Statia explained that: “We have had some problems with RUSAL. In some instances we found that they were not utilising the fuel for the purposes for which it was given. Once we give exemption letters we’re always doing reconciliation to ensure that if you get exempted fuel you use it for the purpose which we give you. Anytime we withdraw and exemption letter we would not withdraw it so as to close down your operations, we are going to give you fuel to continue your operation as we continue our reconciliation.”

According to Statia, the GRA has found evidence to support that the company was indeed abusing its duty free concessions, even as the investigations continue. He did not say what measures the tax body will take against the company for its abuse.

“There is evidence of abuse of all concessions all over the country and that is the reason we are stamping down on, it’s not just RUSAL. Exemption letters are based on the utilisation of the fuel. The reason why there was an investigation is because the exempted fuel was being abused. And the GRA has to recognise and deal with the national interest. It was based on the recognition that some of the fuel was not ending up where it was supposed to, that is the reason why the investigation started,” Statia informed.

Statia maintained that the investigation never hampered RUSAL receiving fuel for operations. “It’s an ongoing investigation. I can’t tell you when the investigation is going to be completed. But in the interest of keeping the company afloat, we have allowed them to utilise the fuel. We would not stop them from operating at all. In the national interest, we have to allow them to operate but in the meantime they are undergoing some investigations,” Statia explained.

According to reports from workers at the company’s mining site, a barge with fuel arrived at the company on Tuesday afternoon. Additionally, at a meeting with the employees’ union and Department of Labour officials on Monday, the company has signalled its intention to recall the laid-off workers but says the action hinges on the employees unblocking the Berbice River which hinders the flow of traffic to and from the company’s mining operations at its Kurubuka Mines.

Following the laying off, some of the employees blocked the river as leverage for the company to properly deal with the employees. However rehiring of the workers is only one of three demands that the employees are requesting be dealt with before they clear the river.

In addition to rehiring the workers, employees are also calling for the company to address compensation for two workers who were hospitalised after suffering electric shocks while on duty last December, as well as for the company to address salary negotiations with the workers’ union, the Guyana Buaxite and General Workers Union (GBGWU).

“The Department [of Labour] is contemplating convening a meeting with the parties to determine the way forward with outstanding negotiations for a new Collective Labour Agreement (CLA) of which wages and salaries is a component. The department will continue to do everything possible within the confines of the known laws and prudent industrial relations practices to have all differences settled,” the MoSP said in a statement.